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Resources » Articles/Knowledge Sharing » Education »
Personnel and Human Resource Management - A Brief Overview
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Personnel and Human Resource Management
The nature and development of personnel management
Before looking into human resource issues, we should look to see what personnel management is all about and how it differs from HRM. There have been many books written on the subject and, no doubt, you will have your own opinion on what it means to manage a team of staff.
The Institute of Personnel& Development’s definition of personnel management is:
The profession of personnel management has as its principal aim the task of ensuring the optimum use of human resources to the mutual benefit of the enterprise, each person and the community at large.
From this definition, you can see that, according to the Institute, people should be seen as a key resource to the organisation. Not only that, but it is inferred that there should be a benefit to the organisation, the people within it and the wider community – these interested parties to the business are known as stakeholders.
HRM Activities
There are many aspects to the human resource function; ensuring that the needs of the senior management team and the workforce are met whilst at the same time, keeping in mind the aims and objectives of the organisation.
Strategies and operating plans
In order for HRM to be successful, there needs to be stated strategies that are clearly understood by those involved. This involves forward planning and an understanding that people, as a key resource of the business, are deployed as efficiently and effectively as possible.
Strategies should not only include human resource planning but also training, staff development and recruitment and selection processes. Within this should also be the awareness of individual needs in terms of advancement or promotion. Career management acknowledges that no business can offer a ‘job for life’ and so therefore provides training and staff development that is as much in the individual’s personal interest as it is for the benefit of the organisation itself.
After the overall strategy has been formulated, operating plans need to be formalised in order that every individual is allowed the same opportunities and treatment. This especially applies to areas such as appraisals, grievance and disciplinary issues, pay and holiday entitlement.
It is important that all staff know and understand the policies that apply to HRM matters. After all, these processes are relevant to them. The way in which grievance and discipline, pay awards, holiday entitlement, working conditions and sick pay are dealt with should not be secrets; they are issues that are hold significance to all employees. How organisations disseminate this information varies – what is important is that it happens.
The Development of HRM
Personnel Management, as a function, did not really emerge until the turn of the 20th Century. Prior to that, there had been very little formal thinking about the issue of dealing with people. Employers held absolute power over their employees and the notion of compromise, negotiation and human resource planning had not been considered.
Whilst personnel management has evolved, it must be remembered that it has not been a case of moving from one aspect to another and leaving one behind. It has been a cumulative process.
It could be said that it was the advent of the 1st World War that triggered the inception of personnel as a function in the workplace. For the first time, women were taken seriously as members of the workforce as many men were called up to serve I the armed services. Before this, although women had worked in factories, they had only held very menial jobs – now they were carrying out work that traditionally had been “man’s work”, and the idea that they needed looking after became prevalent.
Human Resource Management
Human resource management tends to fall into two categories. There is the ‘hard’ element and the ‘soft’ element.
Storey (1989) and Guest (1999) define two distinct versions of HRM which they characterise as “hard” and “soft” – one focuses on business objectives and output and the other focuses on the motivation of employees.
The following table outlines the major differences between ‘hard’ and ‘soft’ HRM.
You can see that the ‘hard’ approach has a sharp focus on the organisation itself and its needs. People are seen as a main resource but to be used as cost-effectively, efficiently and productively as possible.
The ‘soft’ approach also recognises that people are a key resource of the business and that the meeting of organisational objectives are of paramount importance. However, the way of achieving those objectives is through people’s enthusiasm, involvement and commitment.
The distinction between personnel and human resource management.
Personnel is now taken to mean the functional aspects of dealing with staff and implies a rather mechanistic approach. Human resource management usually implies a softer approach with emphasis on discussion, effective delegation, forward planning and the involvement of staff in decision making.
Management also need to be aware that every firm co-exists with other organisations in an ever-changing environment. Issues such as the implications of the single European market and the Social Charter are impacting on many firms as is employment law. Not only do human resource managers need to be conversant with UK law but also with the European dimension.
All of these issues are important and it is up to the human resource manager to understand them and help to integrate them into the wider strategic picture that will enable the organization to move forward.
Line managers are the key people who have to balance business efficiency and people management
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